Taxes in Spain for non-residents

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This topic contains 12 replies, has 5 voices, and was last updated by Profile photo of GarySFBCN GarySFBCN 3 years, 9 months ago.

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  • #57272
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    GarySFBCN
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    I have an appointment with an accountant next week to figure-out what it is I need to do tax-wise. I will report back with what I discover, assuming that the news doesn’t have me jumping off the Torre Agbar.

    But here’s something that most of you may already know about. I found it very helpful to understand how things did function before changes in the tax law and most of it seems to still be applicable:

    http://www.agenciatributaria.es/AEAT/Contenidos_Comunes/No_residentes/Tributacion_de_no_residentes/Folletos_divulgativos/irnringles.pdf

  • #115254
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    Anonymous
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  • #115266
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    GarySFBCN
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    Thanks, mortimm!

  • #115311
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    Anonymous
    Participant

    Does anybody know
    a) What are the penalties for non declaration ?
    b) What is the percentage of interest that the Hacienda charges ?
    c) Is the interest simple or compund ?
    d) Is the penalty or the rates of interest varies according to the nature/type of tax i.e.Income tax, the non resident pay on the presumed rental income which the law see’s as rental income that is not declared ?
    e) The penalty/interest the same for residents & non residents ???

  • #115325
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    Anonymous
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    Your taxes in Spain as a non-resident are all property related. You could do worse than have a look at my guide 😉 :

    Property taxes in Spain for non-residents

  • #115337
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    GarySFBCN
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    Good stuff!

    Actually Mark it was something else you posted on your website that has me running to the accountants – fiscal residency. As I am married to a Spaniard, I am automatically considered a fiscal resident. However one can prove otherwise – but how to do that is what I’m looking for.

  • #115338
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    Anonymous
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    @garysfbcn wrote:

    As I am married to a Spaniard, I am automatically considered a fiscal resident.

    I don’t know if that is right, but obviously you had better check with a tax lawyer.

    I hear that these days there are lots of Spanish bankers (think Santander) who work in London Monday – Friday, then go home to the family in Madrid for the weekend, yet pay non-dom UK taxes on income. Very sweet deal. They are all Spanish, married to Spaniards, with family home in Spain.

  • #115339
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    Anonymous
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    GarySFBCN I guess it comes down to that you have to prove where you spend 183 of your days living/working. The burden of proof resides on you when you are deemed to have some sort of connection to the country… married, children etc. That’s how it is in most of the world but you will have to look at the tax treaty between the US and Spain. The rule about 183 is mostly a guideline. The thing about the banksters paying no tax in England seems weird and sounds more like tax evasion than anything else.

  • #115345
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    Anonymous
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    Mark. The link you had posted does not cover the issues that I have raised.

  • #115348
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    GarySFBCN
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    Ardun,

    From Mark’s post under “Are you a resident in Spain for tax purposes?”

    http://www.spanishpropertyinsight.com/tax-and-pensions/spanish-tax-residence/

    You will become resident for tax purposes in Spain if:

    You spend more than 183 days in Spain in one calendar year. You become liable whether or not you take out a formal residency permit. These days do not have to be consecutive. (Temporary absences from Spain are ignored for the purposes of the 183-day rule unless it can be proved that the individual is habitually resident in another country for more than 183 days in a calendar year.)
    *Or, your “centre of vital interests” is in Spain, e.g., the base for your economic or professional activities is in Spain.
    *Or, your spouse lives in Spain and you are not legally separated even though you may spend less than 183 days per year in Spain

    I’ve read this elsewhere as well.

  • #115764
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    GarySFBCN
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    @mark wrote:

    @garysfbcn wrote:
    As I am married to a Spaniard, I am automatically considered a fiscal resident.

    I don’t know if that is right, but obviously you had better check with a tax lawyer.
    I hear that these days there are lots of Spanish bankers (think Santander) who work in London Monday – Friday, then go home to the family in Madrid for the weekend, yet pay non-dom UK taxes on income. Very sweet deal. They are all Spanish, married to Spaniards, with family home in Spain.

    @Ardun wrote:

    GarySFBCN I guess it comes down to that you have to prove where you spend 183 of your days living/working. The burden of proof resides on you when you are deemed to have some sort of connection to the country… married, children etc. That’s how it is in most of the world but you will have to look at the tax treaty between the US and Spain. The rule about 183 is mostly a guideline. The thing about the banksters paying no tax in England seems weird and sounds more like tax evasion than anything else.

    OK, we met with the lawyer this afternoon. Good news/bad news.

    Good news: As Ardun guessed, because I am married to a Spaniard, I have to prove that I am not a fiscal resident and the lawyer says that it’s easy to do because I have not been in Spain for more than 180 days in any year.

    More good news: Because I am not a fiscal resident, I do not have to declare any foreign accounts at all.

    Somewhat good news: I do have to pay some local tax on my half of the vivenda we bought, based upon the cadastral value, which is pretty low. My share of the tax, which is due at the end of this calendar year is about 66€, and I will have to pay it each year.

    Neutral news: My husband will have to declare 50% of the sum of all banks accounts in the US that list him on the title and that have a total value of greater than €50,000. This is ‘registered’ and not taxed, but will be subject to the ‘wealth tax’ (or whatever it is called) if we reach a certain level of wealth, which is €500,000 each in Catalunya as of today.

    Bad news: There is a change in policy with the US: For fiscal residents of Spain who are citizens of the US, it used to be that if they paid taxes in the US, they would not have to pay taxes in Spain. The new policy is that they (I) will be responsible for paying taxes in Spain as stated by others here: My taxes will be calculated in Spain and they will deduct the amount I pay in the US and I will have to pay the rest here in Spain. Not the end of the world, but it will have me scrambling to figure out if I can really afford to retire this year as planned.

    Other news: They kept talking about certificates of taxes paid that I can obtain from the government. I think that is how it works in Europe, but in the US, I don’t believe there is any such thing. I’ll work on that one, assuming I survive the reforma.

  • #115768
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    Anonymous
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    Its annoying as hell because they will probably force you to pay up front for the taxes and then they will reimburse you on the difference later on. Dont forget to get everything stamped at a notary otherwise they will just laugh at you. I like lots of things with Spain but to deal with their funcionarios is hardly one of them. Luckily you probably have better ones up in Barcelona since its not Spain. 😀

  • #115771
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    GarySFBCN
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    @Ardun wrote:

    Its annoying as hell because they will probably force you to pay up front for the taxes and then they will reimburse you on the difference later on. Dont forget to get everything stamped at a notary otherwise they will just laugh at you. I like lots of things with Spain but to deal with their funcionarios is hardly one of them. Luckily you probably have better ones up in Barcelona since its not Spain. 😀

    I was VERY impressed with the tax lawyer.

    My advice to anyone: If you have a legal issue or serious medical issue, get yourselves to a big city for a consult. In the case of medical issues, a city that has a medical university is probably the best place.

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